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Stephen Schork, The Schork Report editor and founder, with his take on Iran and oil prices, plus what can help drive these prices back down.
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OK guys oil prices are just settling down 2%.
104 dollars and seven cents a barrel but.
Will this downward trend continue our next guest says that more needs will be done.
And yet they real solution for our -- walls joining us now Steven -- founder and editor of the short reports David well welcome to to the show and I gotta tell you -- before we get two years solution.
The president has had its press conference today talked about our -- talk about gas prices.
Are you -- more confident that there may be listening to this this press conference that that the administration had some solutions there.
Stopping this meteoric rise in gas prices and oil prices.
Now.
With regard to -- around I'm sorry it's just the situation that it's don't have to solve itself it will have to come to -- and and until we -- do you see a resolution with that headline risk.
You're going to see an upward skew into the market it's just too scary to try and short this market.
People certainly are aware of this and -- going to have that as their ace in the hole as -- war until we start to see.
Some sort of peaceful remedy to this situation.
You have -- -- the president also did talk about the fact that we exported fuel last year that there were developing Green energy also.
Talk about fuel efficiencies you talked about them maybe fixing the bottleneck to refineries our whole lot of things along checklist of things.
If all these things are done could that that's sort of.
Ease the price of the pump the pain at the pump.
Now because these are not as quick quick term solutions these are solutions -- -- war.
In the long term in -- war to an extent next summer.
But as far as addressing the issue this summer -- these issues talking about Green energy will do nothing to get oil prices or gasoline prices lower.
We have to keep in mind even if you take he ran out of the equation here in the United States on the East Coast here in Philadelphia.
We are looking at the disintegration of once was a very proud robust refining industry.
More than half of that industry now is closed so the concern.
Let's again -- ran out of here the concern is the lack of refining capacity that is the lack of ability to manufactured enough gasoline this sorry to get at odds in the market talking about Green energy is certainly not going to solve that.
Issue and that's segued into what -- solution will be -- by the way these coast to I think you know we get a lot of this oil Brent crude.
Which is right now priced at the highest -- -- in euros and perhaps dollars stimulus talk about your solution because I haven't heard anyone else talk about this I think is really intriguing.
Well indeed we we did this during the 05.
With the lack of refining capacity that was decimated -- -- hurricanes Katrina and Rita.
In 05.
And I I think the smartest thing we can do and that I haven't heard proposed yet in the administration.
Is to rescind the Jones act now the Jones act is maritime law that states that.
Interstate commerce -- board has to be -- acted on US flagged vessels.
So far I want to move oil from the Gulf Coast of the United States to the north east I have to do it on a foreign flagged vessel a actually -- US flagged vessel.
Now what we're don't have in June is the reversal -- of be a pipeline.
That's going to be able take Canadian and North Dakota oil which is right now -- about eighty and ninety dollars a barrel well below the global price -- Dot oil's going to be introduced to refineries in the Gulf Coast starting in June.
Now you you make god cheap get -- I mean if you using ninety dollar oil in a 130 dollar market obviously going to be producing a lot of gasoline.
Now if you increase the inventory of vessels that could take that gasoline from the Gulf Coast in -- increase that inventory I mean using in addition to US flag.
Foreign flagged vessels he'll have a greater inventory of transport will be easier to shift that gasoline.
Up to the northeast if you do not do with what you're going to see is US flagged vessels moving -- gasoline but foreign flagged vessels are going to -- that oil.
And gasoline instead taken -- New York Harbor the -- taken it and selling it -- customers in Latin America.
Right which is of course last year part thing we saw -- -- to gasoline sold.
Outside of this country I think it's an and a bit of brilliant idea of course.
After the gulf oil spill a lot of those ships -- turned the way that wanted to help with clean up the bulk of the loan to a short copper in the short report fantastic stuff thanks -- we appreciate it that.
